Cyber Monday is the first Monday after Thanksgiving. It is known for online shopping deals and was christened in 2005 by Shop.org.
Cyber Monday has become one of the biggest online shopping days of the year, surpassing even Black Friday. In 2020, shoppers spent $10.84 billion on Cyber Monday, compared to $9.03 billion on Black Friday.
Cyber Monday Sales Trends
Over the years, half of all Cyber Monday spending occurred on Monday during normal business hours. More recently, mobile spending increased to more than 40% of total sales. Instead of starting at 8 a.m., Cyber Monday basically begins at midnight and continues throughout the day as consumers check their mobile devices for deals.
Cyber Monday has set new records each year since its inception. Between 2005 and 2010, sales doubled. Media coverage of Cyber Monday sales improved, and shoppers began looking for deals online.
During the 2008 recession, online deals became even more important. There were also fewer shopping days after Thanksgiving. That pent-up demand benefited Cyber Monday. Since 2010, Cyber Monday sales have increased eightfold, according to Comscore data compiled by BlackFriday.com.
In 2020, Cyber Monday sales hit a record $10.84 billion, though it fell short of the forecasts.
Why Is Cyber Monday So Popular?
In 2020, Cyber Monday was expected to be even more popular than ever. Leading up to the day, almost one-third of shoppers planned to take advantage of Cyber Monday sales, compared to just 24% for Black Friday.
In a BlackFriday.com survey, more than 80% of shoppers said they were impacted by the COVID-19 pandemic. Many stores were scheduled to be closed on Thanksgiving, which may have sent shoppers online instead. Retailers started offering Cyber Monday sales for the entire week, too.
Almost 60% of shoppers preferred online shopping during the holiday season, according to a 2018 Harris Survey on behalf of The Hill. The survey found that 27% of time-strapped shoppers said that they found online shopping more convenient. More than one in five respondents said that 24-hour convenience was a big reason. While 40% of respondents preferred using a computer, another 20% would rather use their smartphone.
Shoppers are using mobile phones to shop online more than ever. Almost half (45%) of Americans use their cell phones while in a store to try and find a better price online. Another 12% have used their phone to pay for an item while in the store.
Impact on Retail Stores and Shopping Malls
Cyber Monday reflects the growth of internet retailing. Even before the pandemic, the popularity of online retailing was making a big impact on shopping malls. Research from the State University of New York at Buffalo showed that 96% of the decline in shopping mall revenue was due to Amazon alone.
The success of internet retailing spells likely doom for brick-and-mortar stores.
In 2018, former JCPenney CEO Mike Ullman said that only 25% of America's 1,200 shopping malls will survive for the next five years. Those that do will serve the highest-earning 20%. Ullman said that only malls that can attract an Apple or Tesla store would survive.
Since then, retailers have filed for bankruptcy at record-high rates, including well-known brands such as Payless, FTD, and Barneys New York in 2019. The pandemic accelerated the decline of brick-and-mortar stores. In 2020, famous chains such as JCPenney, Stein Mart, and Nieman Marcus declared bankruptcy.
How to Get the Best Cyber Monday Deals
Retail sales can be found on CyberMonday.com, which features a schedule of which retailers offer deals at what times in a "Deal of the Hour" promotion. You can find sales from more than 800 online retailers.
Top stores like Walmart, Amazon, and Target often start cyber week sales on Thanksgiving Day itself. The best way to get in on their deals is to sign up for their email newsletters.
Deals often consist of free shipping, though retailers have also offered various price discounts. Other offers may include free gifts with purchase.